Sustainable Investing

Sustainable Investing

Sustainable Investing.

 Phoebe Stone, head of sustainability at LGT Wealth explains their approach to sustainable investing.  30 minutes and definitely worth a listen!  It contains some interesting slides and Phoebe answers questions on the likely impact of current market conditions. 

Enquiry form

When you press SUBMIT, you voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential by us and held in accordance with General Data Protection Regulation. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

Don’t let caution get the better of you

Don’t let caution get the better of you

Don’t let caution get the better of you.
“A ship is safe in harbour, but that is not what ships are for”

Until relatively recently, inflation wasn’t a serious concern. The UK hadn’t seen persistent price rises since the 1970s. Today, there are reasons to be more concerned. Supply shortages and bottlenecks, higher energy costs, increases in wages to attract staff in sectors finding it difficult to recruit and the government unwinding covid support schemes are pushing up prices. While central banks continue to suggest that the rises are “transitory”, many economists are assuming inflation will settle at a higher level than it has over the past few decades.

When inflation rises quickly, the Bank of England will tackle it by raising interest rates. They work on the principle that when borrowing is more expensive, people will have less to spend, and prices will go down in response. However, if inflation is caused by external forces – such as the global squeeze on energy prices, then raising interest rates may not solve the problem.

This may be an issue for investors. Even if inflation stays in line with the Bank of England’s targets, long-term investors need their savings to grow by around 2% a year just to ensure it maintains its purchasing power.

The most important rule for any long-term investor is to avoid “reckless caution”. Investors often don’t recognise that there is a risk associated with keeping their long-term savings in cash because their capital value stays the same, but their buying power will be progressively less and less. One of fm’s 7 principles of investing is – don’t just invest in cash. Every investor does need emergency funds but for longer term investment plans, other asset classes will offer better prospects for capital growth and potentially beat the perils of inflation.

By Philip Harper  |  June 2022

Enquiry form

When you press SUBMIT, you voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential by us and held in accordance with General Data Protection Regulation. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

Financial Planning 

Financial Planning 

Financial Planning 

More clients are using our financial life planning service for a variety of financial scenarios. We use smart technology to help draw a picture of their current financial position and build meaningful plans for the future based on their goals.

Initially, we used this technology mainly for retirement preparation, but we have also found it to be helpful to clients with a variety of conundrums including private care homes, school fees, or even a possible career change.

Think of it like a sat-nav in the car. Not only will it help you understand where you are and where you want to go, but will also highlight all the possible routes, helping to avoid any roadblocks along the way. This type of future cashflow planning is a consultative experience helping you visualise your future lifestyle and bringing a sharper reality to the financial decisions you need to make.

It’s possible to run through many different scenarios to see how they might affect your finances. These can range from retiring ambitiously early, through to the technical stuff, such as the impact of investment returns and the tax man on your overall financial plan. Life events such as marriage, your first child or grandchild, changing jobs, or buying property for yourself and family all have a financial outcome. This is why it is important that any financial forecast is regularly reviewed to check against progress and provide the best chance of meeting its target.

We believe the best way we can assist the happiness and financial health of our clients is by helping them to create a realistic plan focused on their life goals.

By Philip Harper  |  February 2022

Enquiry form

When you press SUBMIT, you voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential by us and held in accordance with General Data Protection Regulation. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

Retirement options for high income earners

Retirement options for high income earners

Retirement options for high income earners

In this world of ours very little stands still. The same can be said for the pensions landscape, as rule changes over the years have made retirement options for high income earners harder and harder to navigate.

High earners are faced with even more restrictions and potential pitfalls, making it vital to understand the rules and seek specialist wealth planning advice. Calculating your ‘adjusted income’ for example, can be complicated but your wealth adviser can do this for you. You could also be affected by the lifetime allowance (currently capped at £1,073,100), the annual allowance (currently capped at £40,000) and the tapered annual allowance (which can reduce to just £4,000 for individuals with ‘adjusted income’ over £312,000).

Luckily, there are tax-efficient options available to high earners wanting to save for retirement.

ISAs
Since their launch, ISAs have been a phenomenal success story. A few years ago, research identified more than 1,000 ISA millionaires in the UK, and this number has certainly expanded since. ISAs allow you to place £20,000 each year in a tax-free wrapper, and the compounding effect plus a supportive market over time can make a real difference.

Spreading investments between spouses
Putting a portion of your investment capital in your spouse’s name makes a lot of sense. It allows each of you to take advantage of your respective tax positions and allowances and could boost your net position.

Offshore bonds
An ‘offshore bond’ is a tax-efficient investment wrapper set up by a life insurance company in a jurisdiction with a favourable tax regime, such as the Isle of Man or Dublin. Because any growth in the investments held within the bond is not subject to UK tax, it can be a useful way to top up retirement savings, although foreign taxes may be deducted at source. 

It is possible to withdraw up to 5% of your original investment each year for 20 years without incurring an immediate income tax liability. If the 5% allowance is not used in a given policy year, the unused allowance carries forward to the next policy year on a cumulative basis. This enables you to select the most opportune time to incur a tax charge.

If you have a higher income, multiple or large pension pots or more complex requirements, retirement planning can be complicated – and there are many rules just waiting to trip you up. If you’d like to ensure you are making the most of pension allowances and consider alternative ways to save for your future, our wealth planning team is here to help.

By Philip Harper  |  October 2021

Enquiry form

When you press SUBMIT, you voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential by us and held in accordance with General Data Protection Regulation. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

Don’t experiment with your investments

Don’t experiment with your investments

Don’t experiment with your investments

Product providers may lure investors with the promise of glittering returns and market outperformance. In reality, only a few achieve this. We believe investors are better served aiming for realistic and consistent long-term investment returns.

 What is a reasonable goal for your investments?
The answer for many investors is market returns aligned with their risk profile. Understanding your risk profile is the cornerstone of constructing a suitable long-term investment portfolio. Conversely numerous academic studies have shown that aggressive strategies chasing returns and the latest ‘hot stocks’ very rarely beat the market.

These mistakes can reduce investment growth. Aiming for market returns is a good starting point when building wealth. Deciding which markets to invest in is also essential and stick to your investment strategy. Many investors take inappropriate risks, investing in products they do not fully understand, make hasty decisions when stocks experience sharp swings, and they pay too much in fees.

You can be more successful with your investments by avoiding common pitfalls, we recommend:

 Have an investment plan for the long term and stick to it. Your strategy must be tailored to your goals and objectives, risk profile and time horizons. Start investing as soon as possible.

Diversify and always consider your investment as a whole: Know what you are buying and understand it thoroughly. Select high-quality funds for your portfolio while being mindful of costs. Indexed tracking funds may offer transparency, low costs and close to market performance for the index they aim to replicate.

Review regularly: Review your risk profile at least annually or whenever there is a change in your financial or personal circumstances. You may need to rebalance your portfolio to adjust different asset class weightings back to your long-term strategy possibly with expert help.

The best investment is advice: If you would like to potentially boost your long-term investment success, please contact us to conduct a review of your portfolio.

By Philip Harper  |  July 2021

Enquiry form

When you press SUBMIT, you voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential by us and held in accordance with General Data Protection Regulation. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

The form has been submitted

Thank you for this confirmation to invest additional funds to your General Investment Account. We will confirm the bank account to transfer the funds and a reference number. Once the top up has been applied to your tax-free investment account, the Client Support Team will confirm this and provide you with an updated valuation.

The form has been submitted

Thank you for this confirmation to invest additional funds to your ISA. We will confirm the bank account to transfer the funds and a reference number. Once the top up has been applied to your tax-free investment account, the Client Support Team will confirm this and provide you with an updated valuation.